Publication Type
Conference Proceeding Article
Version
acceptedVersion
Publication Date
12-2023
Abstract
In this paper, we explore the spillover effect of customer firms’ data breaches on their upstream supplier firms’ cost management strategies, proxied by cost stickiness. Our primary analyses suggest that data breaches suffered by customer firms are associated with a decrease in cost stickiness among supplier firms. Furthermore, the reductions in supplier cost stickiness are stronger if suppliers are managed by CEOs from national cultural groups with high uncertainty avoidance, low long-term orientations, and/or low individualism. In sum, the findings contribute to both Information Systems (IS) and Operations Management (OM) disciplines in terms of data breach, cost management strategy, and the role of national culture in OM. In particular, the findings can facilitate the management and regulation of data breaches for managers and regulators.
Keywords
data breach, cost stickiness, supply chain, managerial expectations, data breach notification laws
Discipline
Databases and Information Systems | Information Security
Research Areas
Data Science and Engineering
Publication
ICIS 2023: Hyderabad, December 10-13: Proceedings
First Page
1
Last Page
41
Publisher
AIS
City or Country
Atlanta
Citation
YANG, Xu; LIANG, Peng; HU, Nan; and XUE, Fujing.
Customer cybersecurity and supplier cost management strategy. (2023). ICIS 2023: Hyderabad, December 10-13: Proceedings. 1-41.
Available at: https://ink.library.smu.edu.sg/sis_research/9321
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://aisel.aisnet.org/icis2023/cyber_security/cyber_security/9